iA Financial Group has invested $10 million in Clutch Technologies Inc., as the used-vehicle seller integrates iA Financial’s extended warranties and insurance products into its online car-buying platform.
The Quebec-based insurance and wealth management company already has a large footprint in the dealer services market, and the agreement will extend its reach in fully web-based sales, said Pierre Miron, iA Financial executive vice-president.
“With this strategic investment in Clutch, we are adding online sales as a new product distribution channel to our current extensive network of automotive dealer services,” he said in a statement.
The deal, announced July 5, will let vehicle buyers on Clutch add iA Financial extended warranties or asset protection coverage as part of a single transaction.
Toronto-based Clutch sold about 8,000 vehicles through its online platform last year. The company currently operates in Ontario and Atlantic Canada after pulling out of several Western Canada provinces in early 2023 as rising interest rates wreaked havoc on used-vehicle prices and the global technology sector.
Company CEO Dan Park said the partnership will “further elevate” the company’s user experience by providing customers with “best-in-class” insurance products.
iA Financial’s investment in Clutch is the company’s second significant move into online used-vehicle platforms in recent months. At the tail end of 2023, the company agreed to spend $25 million for a 10-per-cent stake in dealership group AutoCanada Inc.’s new F&I business with Kijiji.
